Small Business Accounting Software: QuickBooks Vs. Sage. Vs. Peachtree. Vs. Microsoft Office Accounting – Part Two
-What’s coming to Asifism.com?-The new breed of small business accounting software
-Accounting: QuickBooks, SAGE, Peachtree or Microsoft Office Accounting? - Part ONE
The first part of this article discussed the things that needed to be a part of a small business accounting package, and what help the existing software in the market typically needs, and whether or not a small business can actually do without the help of an accountant or book-keeper. Let’s put all of that aside, and now simply talk about the accounting software available in the market as is. The packages I have used, and most of my clients use, and ones that are available almost globally will be the subject of discussion here.
Of the four packages mentioned here, QuickBooks and SAGE are scalable from small business to medium business. So before I dwell into which is superior and which is not, if you think you have a business that will grow or develop at a rapid pace, and will outgrow the circa definition of a Small Business, maybe you’ll have to stick to one of these. That’s not to say that Peachtree or Microsoft Office accounting cannot support medium size business. It can, with intelligent, creative (but legal) accounting.
QuickBooks – The Good
In my opinion, QuickBooks is probably the most comprehensive of out of the four packages (QuickBooks, Peachtree, Sage & Microsoft Office Accounting). It provides relatively efficient functionality, with a standard interface, customizable reporting, and it won’t cost you an arm and a leg. Feature-wise, it probably contains more than any of the other three pieces of software; it will do the basic accounting, invoicing, payroll subscriptions, credit card transactions, GL, PL & SL, prepaid (well, sort of), customer statements, financial reporting, etc. etc. etc. Quickbooks ALSO has some concept of drill down functionality, which can be relatively insightful at the click of a button.
Another area that QuickBooks has a big plus in its wide market area and availability of support. It is relatively easy to find QuickBooks consultants (certified or not). The support network is out there, and their own web site can guide you on where and how to find support. Plus, if you’re in the US, QuickBooks is the software of choice for many US Universities, making most accounting graduates QuickBooks literate, if not experts.
In addition to the friendly interface, QuickBooks is relatively self explanatory. The titles in the menus, the screens, the interface, the ease of use, all makes it a very efficient piece of software, especially if you’re a computer literate accountant. Even if you’re not, the learning curve is not too high.
QuickBooks – The Bad
From my position, I really don’t have much bad to say about QuickBooks. I’ve been using it for several years, and functionality wise, there’s really not much wrong with it (in comparison with other accounting / bookkeeping software in the market). The only possible drawback is that it’s ultra feature richness may make it confusing for the not so computer literate accountant/bookkeeper.
Technically, QuickBooks has one pitfall. From year to year, newer versions come out, and compatibility has been an issue in the past. If you upgrade, you have to convert data, and although it’s not that tedious with the new version, it would be much simpler if Intuit simply made Quickbooks backward compatible, which it probably doesn’t for reasons of profitability.
Sage – The Good
Really, I don’t have much to say here. In the near future, you will see me as both a QuickBooks Pro Advisor and a member of the Sage Accountancy Club, and that’s because it is good for business, and the UK is infested with Sage Line 50. It’s an okay piece of software. The interface is relatively standard, and it can pass off as a bookkeeping / accounting software, although all the others will give it a run for the money, and probably beat it.
Sage – The Bad
There’s a lot to say here, but I won’t bad mouth them too much. No drill down functionality, unfriendly interface, unfriendly usability, restrictive, poor layout, etc. etc. Clearly, you can tell that this is my least favourite software, so I’m going to stop talking about it now.
Peachtree – The Good
Peachtree is a fantastic piece of software. Although I trained on QuickBooks Pro in university, the first piece of accounting software I used on the job was Peachtree Accounting 2006. I was pretty reluctant about it first, but as it turns out, Peachtree is a wonderful piece of software.
It’s a less dull, less serious looking version of Quickbooks, and offers virtually all the functionality of QuickBooks. There’s less gray (unlike Quickbooks & Sage); the interface and layout are very clean, the different templates are customizable (as they are in QuickBooks), and it offers all the supplementary functionality (credit cards, good journal layouts, invoicing, POs, SOs, etc. etc.). All in all, this is a great piece of software, and is a wonderful place to start for any small business. It’s not to heavy on the pocket, and you don’t have to be a rocket scientist to figure out how it works. Oh, and Peachtree offers some drill down functionality like QuickBooks (unlike Sage).
Peachtree – The Bad
Peachtree is only US compliant. The software is not available for purchase or use outside the United States, and it doesn’t support multi-currency. What’s worse is that Sage has bought Peachtree from Best Software, and it has become Sage’s way into the US market. As long as they don’t make drastic changes to Peachtree, it is a fantastic piece of small business accounting software.
Microsoft Office Accounting – The Good
Okay, this is Microsoft’s first step into the Accounting domain. Originally termed Microsoft Small Business Accounting 2006, the software was renamed to Microsoft Office Accounting, and rightly so. It’s a sharp mixture of QuickBooks and Peachtree functionality the Microsoft Way. What’s good here is that this is one of the very few small business Accounting Packages on the market that will support multi currency without any issues, and it can probably pass off as a software that doesn’t necessarily require you to be very accounting literate. Why, you ask? It shares a striking resemblance to Microsoft Office, hence the name Microsoft Accounting. The idea here is that if anyone can use Microsoft Office Products, they should be able to use Microsoft Accounting.
Frankly, I have been impressed with Microsoft’s first try at Accounting Software. It may need some bug weeding, but all in all, this is a good starting point for Microsoft, and after months and years of using QuickBooks, Peachtree & Sage, it didn’t make much for me to get comfortable with Microsoft Office Accounting; just a couple of hours. This is a very affordable software for most small businesses, and provides the BASIC functionality of Quickbooks & Peachtree, without passing off as a complex, confusing or difficult to use accounting/bookkeeping package.
Microsoft office Accounting – The Bad
At this point, since this is something that is actively being developed my Microsoft, credit card processing, payroll etc., though existent, are slightly limited. Although most small businesses don’t use these features from within the software, they are useful considerations, as a small business truly sees the use and efficiency of the software if functions like payroll are managed from within the software. This software is certainly scalable, but at this point it’s a very good basic package for small business, and scalability is yet to be seen.
I’m sorry I’ve had to cut this article short. I had intended to write very detailed reviews, but I just haven’t been able to find the time to do it.
If you’re in the UK and looking for help with any of the above products, feel free to contact me or VAFTA Solutions Limited. Ultimately, what’s best for you depends on your business habits, practice, requirements, and your accountant/bookkeeper.
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April 6th, 2008 at 12:56 pm
I’m actually beginning to agree with everyone. Microsoft Office Accounting is proving to be much more efficient than QuickBooks.
May 18th, 2008 at 3:41 am
I’ve used microsoft office accounting for about a year now. I started with the free version and used it up until about a month ago, and i love it. The layout is very user friendly, and because its a MS product it works perfect with MS Office. I would recommend this to any small business.
June 22nd, 2008 at 1:29 pm
It’s quite clear that the writer of this article is biased and, as a “solutions” reseller, gets a huge commission off of selling the increasingly ad-filled, not-so-intuitive (unless you’re accountant ‘or reseller’ sets it up), Quickbooks garbage . I mean the only thing thing bad about Quickbooks was it’s “ultra rich features.” LOL… now I’m going to go vomit. Better yet… go to Google and type in ‘quickbooks sucks’ and view the many entries and get a good balance of both good and bad reviews.
June 24th, 2008 at 3:36 pm
Jack, thanks for your feedback. Just because you are incompetent does not mean a particular piece of software is bad. That said, nobody said Quickbooks was perfect.
And, for the record, I’m not a solutions reseller for Quickbooks. I’m a Microsoft Partner. So, as much as you claim my review is biased, your statement is more ill founded and uncalculated than the opinion you will form.
But since you have to live with it, best of luck!
July 31st, 2008 at 8:57 pm
Thanks for the information. I have looked around the Internet and this is the best comparative chart so far!
My (canadian) accountant directed me towards Sage, and I have to admit I find the interface very clumsy and everything but user-friendly. I lost a day just to figure out how to do very straightforward operations. On the upside, nostalgic will feel back in the 1980’s.
July 2nd, 2009 at 5:55 pm
Microsoft no doubtedly will provide the better product in this arena of software. The trouble will be in getting accountants to switch over to it. That’s a learning curve and comfort issue. Wonder if there is a converter/translation tool for a migration to one or the other ? Why have to start over ? Anyway, ultimately Microsoft should dominate this software market, just a matter of how bad and when they want it ?
July 4th, 2009 at 6:35 pm
I decided to see what gnucash was about on the Ubuntu Linux box. It’s free like Ubuntu. It’s a slightly different approach, but with a little self-training invested, it seems like it can handle many, if not almost all of things the “pay-per-use” programs provide. I’m relatively impressed with it.
http://www.gnucash.org/
http://www.redhat.com/magazine/020jun06/features/gnucash/
Upon first opening the program, don’t expect QB Pro Or MOA to open, but before panicking, give it a chance and get your bearings straight for a moment. gnucash is different, it’s not a QB/MOA clone in the way it presents itself at the opening launch of the application.
My comment is just a suggestion, just another alternative ?
BTW, one that nobody mentions :
http://www.appgen.com/aptus/my_books_professional_linux2.htm#
http://www.appgen.com/aptus/screen_shots/lin-win_screen_shot1_pro.html
July 21st, 2009 at 9:51 am
i started in buisness installing security systems, book keeping using writen ledgers, then i used SuperScript on a Commador 128 (a brilliant programable word processor much lamented). my 1st real accoounts package was a ‘loaned’ copy of sage 4.2 (for dos) with no instructions provided but over a week end i got to understand it. then i bought and used TASBOOKS. moving to Quickbooks then Pro, and i now i havee used QB Pro 2005 since its release, after QBP 2004 was proven faulty and i was given a free upgrade.
obviously i’m not one to learn quickly from my previous errors perhaps, but aware of Intuits beloved ’sunset’ policy for their products, last year i tried upgrading to QB Pro v2008 having been assured it was fully tested for compatability, but it stuffed up the VAT calculation so badly it was criminal, costing me days to sort it all out.
reading intuits own forums will confirmed i was not the only one with this serious problem, appaerntly they finally admitted it was because they changed the way it did the VAT calculations - wicked or what? i was estatic.
to be fair, and not to overly slate Intuit, i’m sure other packages have their drama’s, QBP2005 has been a marvel bit of software and serves me well, just when a company advertises it is for the ‘non-accountnat user’ - it should do what it says on the tin and with the greatest of care, surely not too much to ask?
i’m in the UK, we have 2 VAT systems the normal acrual, and for smaller buisnesses VAT Cash Accounting system (which i am on). i don’t know if they have changed it but Intuit admitted QBP was a (for VAT) an acrual based sofware with Cash Accourting ‘bolted’ on. make what you will of that.
this is my persoanl overview i.e. IMO -:
QBP2005 is not as pretty as V2008 but it is as functional as you are ever likely to need. based on QBP V2005 i can highly recommend the integrated bolt-on Payrol option if you have any employee’s, a couple of buttons and your done
after the update debacle, i looked again at Sage (my wife uses Line the heavy weight line 150 at her firm and also trains other in it), but i hated the rigidity and feel of it, back tracking a simple mistake is by far way to cumbersome. Sage seem to be on a mission to ensure the word ‘duplicity’ remains a firm entry in the english dictionary.
just to mention MYOB might suit many.
but one big need of mine which only Intuit’s Software handles is to be able to ‘tree’ clients, this means i have main client such as a Property Services Company (PPS) who use me to work on various sites they look after.
i have to address the invoice to one of four of their officeces, then the delivery to match the various site
so i get the following
The Trustees of Finagan House Finagan House
C/o Bloggs PPS Loam Lane
42 White Street Ingatstone
Brentwood Essex
The Trustees of Bream Charity Bream Care Home House
C/o Bloggs PPS Nettle Street
42 Lowel Place Colchester
ROmford Essex
an accounts package should help to make you life easier, not add to its burdens, QBP handles the easily, placing all the jobs under one client. when i get paid with a single cheque for 3 or more different sites, i can allocate it as required, and reconcile the receipt easily on the bank statement.
might seem small beer - but it is one ability that has kept me faithful to QBP V2005 and the ‘devil i know’.
July 21st, 2009 at 10:19 am
Dear Sir,
QuickBooks is an very accurate software but it require the FIFO/LIFO method of costing.
I am awaiting your reply.
Thanks,
Muhammad Ishaq Irshad
Lahore-Pakistan
July 25th, 2009 at 10:54 pm
Alan,
I’m going to write a new article soon on 2 new accounting packages, more along the SaaS lines. They’re purpose built for the UK market and you’ll never have to worry about upgrades again, or backups, for that matter.
July 25th, 2009 at 10:55 pm
Dear Ishaq,
What would you like a reply to?
July 29th, 2009 at 3:22 pm
Alan,
you are right, the new version of Quickbooks 2008 and 2009 sucks really bad. you have to recreate all you templates because the new versions does not incorporate this and to make matters worse the taxs does not seperate like before,
1 row for GST and 1 row for PST. they remove this from the new version. now i’m looking for a new solution after wasting almost 4 days back and fort with QUICKBOOKS.
DO NOT BUY QUICKBOOKS.
August 1st, 2009 at 5:48 pm
Try kashflow if you’re in the UK or Xero in the US. Reviews coming soon.
August 29th, 2009 at 9:18 pm
I’ve used Quickbooks (UK) for 10 years now. I am moving to Sage because the different accountants I deal with use it. I like the fact that a Sage license will transfer when I upgrade / replace my computer. Intuit support warned me to upgrade every 4 or so years as if I have a machine failure they will not validate my license to work on my replacement machine after a period of approx 4 years. Sage and a few other companies when asked confirmed that they will revalidate licenses while they still had breath left. As long as you don’t mind having to pay to upgrade Quickbooks periodically I would recommend it as a simple tool.
October 26th, 2009 at 7:02 pm
Apparently this will get no further development. They also just cut off the payroll service, leaving you high and dry as its ridiculously hard to enter payroll manually (a deliberate design choice)
http://www.pcpro.co.uk/reviews/software/263395/microsoft-office-accounting-professional-2009#lastComment
Look elsewhere
January 29th, 2010 at 2:50 am
I think someone stole part of your work.
http://myabacus.wordpress.com/2009/08/25/quickbooks-vs-peachtree/
February 11th, 2010 at 2:56 pm
Thanks consumer, he has been reported and the article has been removed.
March 8th, 2010 at 12:02 am
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